A Managerial Perspective on the Impacts of Implementation of Minimum Wage in Malaysia

The main method of communication between employers and employees is through salaries. They stand for the most important facets of daily life. Malaysia's minimum wage law provides incentives for employers and employees to implement productivity-enhancing measures. The goal of the government is to make Malaysia into a nation with a highly productive and high-income economy. A minimum wage legislation will pressure businesses to increase prices in the short term, particularly for businesses that rely on low-paid labor. Firms may be compelled to shift higher up the value chain to compete. These adjustments will contribute to Malaysia becoming a high-valueadded, high-income economy. The minimum wage is anticipated to have a favorable impact on the Malaysian economy in the medium to long term. A rise in employee income is also anticipated to lead to increased consumer spending and vigor in the economy. The policy will help to advance a better and more equitable wage structure as well as higher value-added economic activity.